Empty Property Rates crippling the recovery agenda – RICS
A new survey from RICS shows that more than 90% of respondents believe that Empty Property Rates on retail premises and office space are ‘significantly detrimental’ to the recovery of town centres. More than half of those surveyed think the charges are a contributory factor in owners demolishing their properties.
RICS notes that 68% of respondents claimed that commercial property floor space is currently vacant for more than six months – the point at which Empty Property Rates become applicable at the full rate – “meaning that the problem of unmanageable taxes is widespread at a time when businesses are most stretched”.
The knock-on effect of Empty Property Rates is also being felt in capital values, RICS says. Three quarters of respondents believed that the rental value of retail premises would decrease as a direct result of EPR.
RICS wants the Government to announce changes in its upcoming Autumn Statement that would extend the exemption period for vacant commercial property. “This would mean that should a retail property owner lose their tenant, no charges would be applicable for six, rather than three months. This would be extended to 12 months for owners of harder-to-let property, such as offices and industrial units,” it says.
“This would allow commercial landlords some breathing space and contribute towards getting the business sector moving again,” said RICS chief economist Simon Rubinsohn.
